The inside of a operated two-stage tankless heater, heated by single-phase electric power. The copper tank contains heating elements with 18 maximum power. Tankless water heaters—also called instantaneous, continuous flow, inline, flash, on-demand, or instant-on water heaters are that instantly heat water as it flows through the device, and do not retain any water internally except for what is in the heat exchanger coil. Are preferred in these units because of their high thermal conductivity and ease of fabrication. Tankless heaters may be installed throughout a household at more than one point-of-use (POU), far from a central water heater, or larger centralized models may still be used to provide all the hot water requirements for an entire house.

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The main advantages of tankless water heaters are a plentiful continuous flow of hot water (as compared to a limited flow of continuously heated hot water from ), and potential energy savings under some conditions. The main disadvantage of these systems are their high initial costs (equipment and installation). Contents • • • • • • • • • • Operation [ ] The heater is normally turned off, but is equipped with which activate it when water travels through them. A is used to bring water to the target temperature. The water circulates through a and is warmed by gas or electrical heating. Since there is no finite tank of hot water that can be depleted, the heater provides a continuous supply.

To protect the units in environments, durable coatings or other surface treatments are available. Acid-resistant coatings are capable of withstanding temperatures of 1000 °C. Combination boilers [ ] Combination or combi boilers combine the central heating with domestic hot water (DHW) in one device. When DHW is used, a combination boiler stops pumping water to the heating circuit and diverts all the boiler's power to heating DHW. Some combis have small internal water storage vessels combining the energy of the stored water and the gas or oil burner to give faster DHW at the taps or to increase the DHW flow rate. Combination boilers are rated by the DHW flow rate. The kW ratings for domestic units are typically 24 kW to 54 kW, giving approximate flow rates of 9 to 23 litres (2.4 to 6.1 US gal) per minute.

Larger units are used in commercial and institutional applications, or for multiple-unit dwellings. High flow-rate models can simultaneously supply two showers. Combination boilers require less space than conventional tanked systems, and are significantly cheaper to install, since water tanks and associated pipes and controls are not required. Another advantage is that more than one unit may be used to supply separate heating zones or multiple bathrooms, giving greater time and temperature control. For example, one 'combi' might supply the downstairs heating system and another the upstairs, duplication guarding against complete loss of heating and DHW in the event that one unit fails, provided that the two systems are interconnected with valves (normally closed). Combination boilers are popular in Europe where market share in some countries is in excess of 70%, with a projected rise in the United Kingdom to 78% by 2020.

This trend is attributed in part by a social trend towards more numerous but smaller households and an ever-increasing trend towards physically smaller and often high density housing. Disadvantages of combination systems include water flow rates inferior to a storage cylinder particularly in winter, and a requirement that overall power ratings must match peak heating requirements.